Yahoo Finance Does Locality Planning Energy Holdings Limited's (ASX:LPE) CEO Pay Compare Well With Peers?
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Damien Glanville became the CEO of Locality Planning Energy Holdings Limited (ASX:LPE) in 1970. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally - as a second measure of performance - we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
View our latest analysis for Locality Planning Energy Holdings
How Does Damien Glanville's Compensation Compare With Similar Sized Companies?
At the time of writing our data says that Locality Planning Energy Holdings Limited has a market cap of AU$33m, and is paying total annual CEO compensation of AU$331k. (This figure is for the year to June 2018). While this analysis focuses on total compensation, it's worth noting the salary is lower, valued at AU$311k. We looked at a group of companies with market capitalizations under AU$289m, and the median CEO total compensation was AU$356k.
So Damien Glanville receives a similar amount to the median CEO pay, amongst the companies we looked at. Although this fact alone doesn't tell us a great deal, it becomes more relevant when considered against the business performance.
The graphic below shows how CEO compensation at Locality Planning Energy Holdings has changed from year to year.
Is Locality Planning Energy Holdings Limited Growing?
Over the last three years Locality Planning Energy Holdings Limited has grown its earnings per share (EPS) by an average of 54% per year (using a line of best fit). In the last year, its revenue is up 67%.
This demonstrates that the company has been improving recently. A good result. The combination of strong revenue growth with medium-term earnings per share improvement certainly points to the kind of growth I like to see. Although we don't have analyst forecasts, shareholders might want to examine this detailed historical graph of earnings, revenue and cash flow.
Has Locality Planning Energy Holdings Limited Been A Good Investment?
With a three year total loss of 70%, Locality Planning Energy Holdings Limited would certainly have some dissatisfied shareholders. This suggests it would be unwise for the company to pay the CEO too generously.
In Summary...
Damien Glanville is paid around what is normal the leaders of comparable size companies.
We like that the company is growing EPS, but it's disappointing to see negative shareholder returns over three years. Considering the improvement in earnings per share, one could argue that the CEO pay is appropriate, albeit not too low. If you think CEO compensation levels are interesting you will probably really like this free visualization of insider trading at Locality Planning Energy Holdings.
If you want to buy a stock that is better than Locality Planning Energy Holdings, this free list of high return, low debt companies is a great place to look.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
